The Hong Kong, Malaysia and Indochina offices are licensee operations under ex-Cordiant agency Bates. They are therefore outside the deal under which rival communications giant Publicis is paying an estimated US$85 million to WPP for the 25 per cent of Zenith it does not own. Industry sources outlined two possible courses for WPP: sell the offices in a separate deal with an asking price of at least $10 million or reallocate accounts and people to MindShare or The Mediaedge:cia.
Zenith regional director Roland Crouch believed the sale to Publicis would go ahead. "It will be a clean transfer," he said.
Others in the industry were less optimistic. "Zenith is a good fit for MindShare in Hong Kong. I can't see WPP handing it over just like that, unless (WPP's chief Martin) Sorrell is assured of getting a big premium," one said. Equally, sources said a merger with WPP firms would be difficult to pull off. "Based on the D'Arcy experience, clients aren't going to automatically move unless they have assurances of key people being in place from the old agency. The feeling now is that the ease with which WPP can retain key Zenith staff is debateable."